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25 Cards in this Set

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  • Back
Cost Management System (CMS)
A collection of tools and techniques that identify how management's decisions affect costs, by first measureing the resources used in performing the organization's activities and then assessing the effects on costs of changes in those activities
Cost Accounting Systems
The techniques used to determine the cost of a product, service, customer, or other cost objective
Cost Accounting
That part of the cost managemtn system that measures costs for the purposes of management decision making and financial reporting
Cost Accumulation
Collecting costs by some natural classification such as activities performed, labor, or materials
Cost Assignment
Tracing or allocating costs to one or more cost objectives such as activities, departments, customers, or products
A sacrifice or giving up of resources for a particular purpose, frequently measured by the monetary units that an organization must pay for goods and services
Cost Objective
Anything tfor which decision makers desire a separate measurement of costs. Examples: departments, products, activities
Direct Costs
Costs that can be identified specifically and exclusively with a given cost objective in an economically feasible way
Indirect Costs
Costs that cannot be identified specifically and exclusively with a given cost objective in an economically feasible way
Cost Allocation
Assigning indirect costs to cost objects using plausible and reliable cost drivers
Unallocated Costs
Costs for which we can identify no relationship to a cost objective
Direct-Material Costs
The acquisition costs of all materials that a company identifies as a part of the manufactured goods and traces to the manufactured goods nin an economically feasible way
Direct-Labor Costs
The wages of all labor that a company can trace specifically and exclusively to the manufactured goods in an economically feasible way
Product Costs
Costs identified with goods producted or purchased for resale
Period Costs
Costs the become expenses during the current period without going through an inventory stage
Traditional Costing Systems
One that does not accumulate or report costs of activities or processes
Cost Pool
A group of individual costs that a company allocates to cost objectives using a single cost driver
Activity-Based Costing Systems
A system that first accumulates overhead costs for each of the activities of the area being costed, and then assigns the costs of activities to the products, services, or other cost objects that require that activity
Two-Stage ABC System
A costing system with two stages of allocation to get from the original cost to the final product or service cost. The first stage allocates resource costs to activity-cost pools. The second stage allocates activity costs to products or services
Activity-Based Management (ABM)
Using an activity-based costing system to improve the operations of an organization
Value-Added Cost
The necessary cost of an activity that cannot be eliminated without affecting a product's value to the customer
Non-Value-Added Costs
Costs that a company can eliminate without affecting a product's value to the customer
The continuous process of comparing products, services, and activities against the best industry standards
Process Map
A schematic diagram capturing interrelationships between cost objects, activities, and resources
Multistage ABC Systems (MSABC)
Costing systems with more than two stages of allocations and cost drivers other than percentages